moneysupermarket.com - Lloyds TSB overdraft fee changes

Commenting on Lloyds TSB's overdraft fee changes which come into effect in December, Kevin Mountford, head of banking at moneysupermarket.com said: "It is good to see further initiatives from a major player in the banking industry on overdraft charges, and the reduction of fees will certainly help some customers.

"For those who flirt with their overdraft every now again and keep under the £10 limit then the free buffer is helpful. If you go into the red without approval you will now be better off as the unplanned fee is being reduced from £15 to £5, but unfortunately those who go into their authorised overdraft will now pay an additional £5 for the privilege on top of the 18.9 per cent interest you are already charged. The free mobile banking service can only be seen as a positive initiative which will help consumers manage their finances.

"As ever, the devil is in the detail and consumers need to ensure they check the small print. It is important when choosing a current account to select one that will suit your needs; otherwise you could end up paying for unnecessary costs."